Everyone is betting on rates going higher and I see the opposite happening.
Rates look like they're topping here, and this coincides with
TLT bottom.
If we look at the chart, we're retesting a major support area here and I think it's going to lead to a reaction that sends TLT higher.
If we end up breaking the trend line, which I think we will the next time we test it, it'll lead to a sharp move in TLT higher. How high?
I've marked off resistance levels on the chart, but I think it could easily break $100 on the next move and potentially go all the way up to $120. I think this will be a bounce within a bear trend, not a change of direction. Macro, I think we're in a higher rate environment over the long term, but if you time this well, you should be able to capitalize on a large bounce.
Largely I think now is a good time to go into safer assets (like TLT) and scale out of equities.
Rates look like they're topping here, and this coincides with
TLT bottom.If we look at the chart, we're retesting a major support area here and I think it's going to lead to a reaction that sends TLT higher.
If we end up breaking the trend line, which I think we will the next time we test it, it'll lead to a sharp move in TLT higher. How high?
I've marked off resistance levels on the chart, but I think it could easily break $100 on the next move and potentially go all the way up to $120. I think this will be a bounce within a bear trend, not a change of direction. Macro, I think we're in a higher rate environment over the long term, but if you time this well, you should be able to capitalize on a large bounce.
Largely I think now is a good time to go into safer assets (like TLT) and scale out of equities.
Note
If we break $83, then it's likely we end up going to the lower supports.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.